(April 11 – 17:40 ET) – Specialty insurer Queensway Financial Holdings Ltd. has entered into a binding letter of intent to sell the shares of its subsidiary, Coachman Insurance Company, to SGI Canada Insurance Services Ltd.

The deal is subject to the completion of due diligence, an audit of the April 30, 2001 accounts and obtaining regulatory approval. The transaction is expected to close by May 31.

Queensway also announced that it has entered into a letter of intent to sell the shares of its subsidiary, Queensway Investment Counsel Ltd., to Kevin Charlebois, a director of Queensway and the subsidiary’s president. Queensway says the transaction is subject to mutually acceptable definitive documentation and is expected to close by May 9.

These sales together with the previously announced sale of substantially all of Queensway’s U.S. operations to Argonaut Group Inc. would, when completed, effectively represent the disposition of all of Queensway’s operating companies. According to the company, the proceeds of these sales will be applied to outstanding indebtedness.